A report in Ireland’s RTE Business newspaper says the Competition Authority (CA) has cleared the proposed takeover of Eircom’s parent company Eircom Holdings Ltd by Singapore Technologies Telemedia (STT). It is understood the CA reached its decision following a comprehensive review of the deal, concluding it did not raise any competition concerns as STT’s only other business in the Republic is Global Crossing.
In September this year, Eircom’s Holdings, formerly Babcock and Brown Capital, reached a deal with STT concerning a takeover, recommending shareholders accept the offer which is worth USD1.15 per share (a 20.2% premium on the Irish telco’s closing price on 24 June 2009). The vote is due to take place at a shareholders meeting in Sydney this December. Minority 35% shareholder, the employee share ownership trust (ESOT), has also agreed to cooperate with the deal.